📊 WATCHING THE CHARTS? DON’T FORGET THE DOLLAR (DXY)! 💵
If you want to understand why Bitcoin moves the way it does, you have to look at the U.S. Dollar Index (DXY).
Historically, there is an inverse correlation between the Dollar and Risk Assets like Crypto. 📉📈
Here is the breakdown:
🔹 When DXY is Strong: Investors flock to the safety of the Dollar. This usually creates downward pressure on Crypto prices as liquidity exits riskier assets.
🔸 When DXY Weakens: Global liquidity flows back into Bitcoin and Altcoins, often leading to bullish rallies.
💡 The Strategy: Before opening a high-conviction trade, always check the Macro environment:
Are we expecting a Fed rate hike?
Is inflation (CPI) cooling down?
Pro Tip: Technical Analysis (TA) tells you "where" to enter, but Fundamental Analysis (FA) tells you "why" the market is moving. 🧠
Stay informed, stay ahead. 🚀
